A new report from the African Private Capital Association (AVCA) reveals that 65% of Ghanaian pension funds intend to increase their exposure to private equity within the next five years, marking a significant shift in capital deployment strategies across one of Africa’s fastest-growing pension markets.
The Pension Funds and Private Capital in Ghana report, released in partnership with The Chamber of Corporate Trustees of Ghana and British International Investment (BII) through the Ghana Investment Support Programme (GHISP), offers the most comprehensive assessment to date of how domestic pension assets can be mobilized to fuel long-term investment in productive sectors.
This momentum is further supported by the Ghanaian government’s May 2025 directive, which encourages pension funds and insurers to allocate at least 5% of their assets to private equity and venture capital by 2026—a move aimed at unlocking domestic capital for national development.
Underutilization of private capital allocations
With total pension assets under management reaching GHS 86.4 billion (US$6.2 billion) by the end of 2024, the report highlights a stark underutilization of private capital allocations.
Ghana currently deploys just 4.4% of its 25% regulatory limit to alternatives, compared to Nigeria’s 34% usage of a 5% cap and South Africa’s approximate 8% allocation under a 15% ceiling.
“This mirrors a broader shift across Africa, where governments are enacting policies to channel domestic savings into productive investments at home and across borders,” said Abi Mustapha-Maduakor, Chief Executive Officer of AVCA. “With these foundations in place, Ghana’s pension system can become a catalyst for long-term, sustainable growth.”
Priority sectors for pension fund investment
The report identifies healthcare (55%), agribusiness (45%), and technology (40%) as priority sectors for pension fund investment. By asset class, 38% of respondents favor real assets such as property and infrastructure, 24% prefer private equity, and 19% are exploring venture capital.
Additionally, 28% of pension funds lean toward DFI-backed vehicles for their de-risking benefits, while 22% support co-investment models that offer shared due diligence and investment protection.
However, several barriers continue to hinder deeper participation in private markets. These include:
- Regulatory constraints, such as complex fund licensing processes
- Market challenges, including limited investable pipelines
- Structural gaps, particularly in data transparency and institutional capacity
- GP-related issues, with 89% of pension funds engaging with fewer than three fund managers in the past year
Addressing the challenges
To address these challenges, the report outlines four strategic priorities:
- Enhancing data transparency and engagement between funds and managers
- Building institutional capacity through targeted training and pooled investment structures
- Deploying blended finance and co-investment tools to mitigate risk
- Advancing regulatory reforms to recognize Limited Partnerships and streamline fund licensing
“Ghana’s pension funds are at an inflexion point,” Mustapha-Maduakor added. “The data highlights both the scale of investable domestic capital and the practical barriers that continue to hold it back. Unlocking this potential will require a combination of regulatory clarity, institutional capacity-building, and deeper collaboration between fund managers and local investors.”
The findings form part of AVCA’s broader Knowledge Exchange Initiative (KEI), a twelve-month capacity-building programme launched with BII support through GHISP, aimed at strengthening local institutional participation in private markets. The report projects a steady increase in allocations over the next five years, positioning Ghana as a potential leader in pension-led private capital mobilisation across West Africa.
Nigeria posts gain
Nigeria’s pension fund industry has been witnessing some growth in recent times, posting a marginal gain in August 2025, reflecting cautious optimism as fund managers rebalanced portfolios amid mixed market signals.
According to the National Pension Commission (PenCom), total pension assets under management (AUM) rose to N25.90 trillion in August 2025 from N25.80 trillion in July by N97.88 billion.
The 0.38% month-on-month growth, though modest, highlights the resilience of the industry despite volatility across key asset classes.
On a yearly basis, pension assets jumped 22.52%, rising from N21.13 trillion in August 2024 to N25.90 trillion in August 2025. This translates to an increase of N3.38 trillion in just 12 months, largely supported by higher contributions and revaluation of existing holdings.
FGN securities remain the bedrock of the industry, expanding from N14.31 trillion in January 2025 to N15.82 trillion in August 2025 alone.
What you should know
Earlier this month, Ghana’s consumer price inflation dropped to single digits for the first time since August 2021, marking a significant milestone in the country’s economic recovery.
- The year-on-year inflation rate eased to 9.4% in September 2025, down from 11.5% in August, extending a nine-month streak of declines, according to the Ghana Statistical Service.
- The drop was largely driven by a sharp moderation in food prices, with food inflation falling to 11% in September from 14.8% the previous month. Non-food inflation also edged lower, easing to 8.2% from 8.7% in August.
